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UL was recently trading at $58.14 and has an implied volatility of 13.31% for this period. Based on an analysis of the options available for UL expiring on 16-Mar-2018, there is a 68.27% likelihood that the underlying will close within the analyzed range of $53.10-$64.90 at expiration. In this scenario, the average linear return for the trade would be 11.11%.

Price target: Zacks Research has updated their six-month price target for UL to $59.00. This price target is a consensus price created from the price targets published by 1 participating analysts whose targets ranged from $59.00 to $59.00.

Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for UL has been updated to 2, which indicates a buy consensus from analysts. Sentiment has moved from 2.20 to 2.20 to 2.00 over the past three months.

Trade approach: The difference between the current price for UL and the mean price target is $0.86, which represents a 1.48% move (3.02% annualized). Since the 180-day implied volatility for UL is 15.28%, a neutral range-bound strategy could prove effective if the price target ultimately turns out to be accurate.

Upside potential: Using this neutral range-bound strategy, the trade would be profitable if UNILEVER closed in the range $52.25-$65.25 on 16-Mar-2018. Based on our analysis, there is a 73.49% likelihood of this return. The maximum return for this trade would be 11.11% if UNILEVER closed in the range $52.50-$65.00.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.